Two companies entered into a lease agreement. Kay Dy Inc. leased its property, plant and equipment to Carrie Co. The proper valuation for the right of use asset for Carrie Co. is * A. Recognize the right of use asset on a present value basis taking into consideration the purchase option and residual value, guaranteed or unguaranteed. B. Recognize the right of use asset on a fair value method based on the fair value of the asset taking into consideration the purchase option and residual value, guaranteed or unguaranteed. C. Recognize the right of use asset on a present value basis taking into consideration the purchase option and guaranteed residual value. D. Recognize the right of use asset on a fair value method based on the fair value of the asset taking into consideration the purchase option and guaranteed residual value.
Two companies entered into a lease agreement. Kay Dy Inc. leased its property, plant and equipment to Carrie Co. The proper valuation for the right of use asset for Carrie Co. is *
A. Recognize the right of use asset on a present value basis taking into consideration the purchase option and residual value, guaranteed or unguaranteed.
B. Recognize the right of use asset on a fair value method based on the fair value of the asset taking into consideration the purchase option and residual value, guaranteed or unguaranteed.
C. Recognize the right of use asset on a present value basis taking into consideration the purchase option and guaranteed residual value.
D. Recognize the right of use asset on a fair value method based on the fair value of the asset taking into consideration the purchase option and guaranteed residual value.
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